Red Bank Commissioners on Tuesday night delayed approving a new budget with a five percent tax increase after Commissioner Jamie Farbanks-Harvey said she had decided to vote against it.
The budget passed earlier 5-0 on first reading. It now will be considered on June 17 - after the certified tax rate will be known.
Commissioner Fairbanks-Harvey said that after considering it the last two weeks, she had dropped her support. She said at the May 6 meeting there had been discussions about increasing the 1.5 percent cost of living adjustment to two percent and money had been found to do that. But she said there was no mention of a five percent property tax increase until the first reading of the finished budget on May 20.
She said, "I contemplated this and became more concerned.” She said that would mean a raise in taxes for three of the last four years, in 2021, 2023 and 2025. That increase had not been proposed in the first or second budget meetings, said the commissioner, and should not be on the residents’ heads. At those two meetings, said Commissioner Fairbanks-Harvey, a two or three percent increase was suggested, but in the budget that was presented, that became five percent.
Commissioiner Fairbanks-Harvey said Red Bank residents were not offered a warning about the rate increase, and it was only introduced to the commissioners four days prior to the first reading. She said that since May 22 at least 50 residents had communicated with her on the topic.
The first reading of Red Bank’s budget beginning July 1, 2025 and ending June 30,2026 had been approved May 20 with the understanding that the property tax rate would change once the certified rate from Hamilton County was set. Since most real estate increased in value with the re-appraisals done this year, the tax rate would have to be lowered to keep the city’s property tax collections the same as the year before, according to state law. However each city can adjust the rate however they want, and if it is raised above the certified rate, the municipality would collect more money.
And that is what was proposed with the first vote on the new budget. City Manager Martin Granum told the commissioners that the budget had been planned with a five percent rate increase over the certified rate, and that would give the city $5,512,500 from property tax. Compromises had been made to get the budget to a point that all five commissioners voted to approve earlier, he said. The compromise most talked about was to remove a new Stormwater supervisor position that was projected to cost the city $80,000.
Vice Mayor Hollie Berry said, after hearing the comments from Commissioner Fairbanks-Harvey, she suggested “adding back the position of the stormwater supervisor because it is desperately needed.” And she suggested that the only change to the budget would be to increase the anticipated revenue by $80,000 to cover the added position.
Commissioner Hayes Wilkinson said he does not love changes made at the last minute, but then he said on the other hand, the city needs the position. Maintaining and improving stormwater in the city is a top priority, so he is trying to reconcile his thoughts about it. Another consideration, he said, is that this would be recurring and not just a one-time expense.
Mayor Stefanie Dalton noted that many buildings in Red Bank have water flowing under them, so controlling the water should be a priority need. The city has managed to do that since 2002 using a “bare bones” approach, she said.
Commissioner Terri Holmes said consideration needed to be given to residents who live on a fixed income while at the same time thinking about the city’s future.
The entire 2026 budget that failed to pass Tuesday night can be seen on the city’s website by clicking on the budget button on the home page.
A motion passed to table a vote until the June 17 commission meeting for future consideration of adding the stormwater position.
City Manager Granum announced that Vice Mayor Berry has been nominated as Vice Chair of the Metropolitan Planning Organization (MPO) Executive Board.